Jacqueline Pointon’s Invited Opinion Piece
[All contactable candidates for the 2024 Tauranga election were invited to supply CityWatch NZ with an opinion piece.]
Why is intensification important for the future of Mount Maunganui | Tauranga Moana?
Tauranga, one of Aotearoa New Zealand’s fastest-growing cities, stands at a pivotal juncture. The city’s planning framework, last updated in June 2024, was outdated and inadequate for meeting Tauranga city’s rapidly evolving needs. With the population projected to surge and housing demand escalating, intensification—higher-density residential developments—presents a strategic solution. This brief opinion explores why intensification is important for Tauranga Moana, despite potential rate increases.
The population of Tauranga Moana is projected to grow significantly over the next decade. By 2028, the population will reach approximately 180,700 under high projection scenarios, and around 172,700 under medium projections.[1] This rapid growth places immense pressure on the housing market, leading to increased demand and escalating property prices.[2]
The previous Tauranga City Plan primarily supported low-density, stand-alone dwellings, which were insufficient to meet the rising demand for diverse and affordable housing options. Intensification, by promoting higher-density housing such as duplexes, townhouses, and apartments, can help bridge this gap and provide more affordable housing in the long term.[3] This approach ensures that the housing needs of a growing and diverse population are met efficiently.
The financial viability of these higher-density developments is supported by modelling data. The Urban Form and Transport Initiative (UFTI) report highlights that constructing duplexes on 720m² lots can provide feasible housing solutions with gross profit margins that meet market expectations.[4] This is important for attracting developers and ensuring the availability of diverse housing types that cater to various income levels.
Financial modelling conducted by Veros Property Services demonstrates the market feasibility of different housing typologies under proposed intensification provisions.[5] The analysis includes scenarios such as one-into-two lot subdivisions, duplex typologies, low-rise townhouses, and medium-rise apartments. Key findings include:[6]
- One-into-two lot subdivisions are highly viable, with gross profit margins meeting market expectations, making them attractive for small-scale developers.
- Duplex units show potential viability, especially with minor market adjustments. For example, two-bedroom duplexes have favourable gross profit margins and can become viable with slight increases in sales values.
- Developing low-rise townhouses can be viable under favourable market conditions. Sensitivity analysis suggests that a 10-15% increase in sales value can unlock viability.
- While challenging, medium and high-rise apartment developments are feasible in high-value suburbs with substantial sales value increases.
These insights indicate that higher-density housing can be both financially viable and attractive to developers, provided a supportive planning framework is in place.
One of the concerns often raised about intensification is the potential for rate increases. However, the long-term financial sustainability of Tauranga hinges on a balanced approach to development. The Tauranga Long-Term Plan 2024-2034 highlights the need of increasing rates to fund essential infrastructure and services.[7] Intensification can help mitigate these costs by making more efficient use of existing infrastructure, and spreading the financial burden across a larger number of residents and reducing the need for extensive new infrastructure development.
Compact urban forms reduce the need for new roads and utility extensions, lowering maintenance costs over time. This approach also enhances the efficiency of public transport systems, making them more viable and cost-effective. The average household rate increase in Tauranga over the past five years has been 4.6%, but with strategic intensification, the city can better manage future rates.[8]
Intensification promotes sustainable urban growth by leveraging existing infrastructure and minimising the need for urban sprawl. The UFTI (2020) report emphasises the importance of developing within existing urban areas to leverage existing infrastructure such as roads, water supply, and sewage systems.[9] This approach aligns with the principles outlined in the Tauranga Urban Strategy 2050, which emphasises the efficient use of land and resources to reduce environmental impact and support a healthy living environment.[10] By focusing development within existing urban areas, Tauranga Moana can protect its natural environment, and reduce greenhouse gas emissions. The Tauranga Urban Strategy 2050 also aims to create self-contained communities with improved accessibility and multimodal transport options, reducing the reliance on private vehicles and promoting sustainable living.
The previous Tauranga City Plan emphasised maintaining the suburban character and had limits on the potential for creating vibrant, diverse communities. Intensification will transform Tauranga Moana into a more dynamic city with mixed-use developments, providing residents with easy access to amenities, public transport, and employment opportunities.
The Tauranga Urban Strategy 2050 proposes higher-density developments around public transport hubs and community centres, aiming for 30-50 dwellings per hectare.[11] This initiative supports the creation of vibrant urban centres that cater to diverse lifestyles and promote social interaction. While higher-density developments present challenges, such as higher risks and complexities in funding, design, and marketing, these can be mitigated through clear and supportive planning provisions. Developers prefer certainty in the planning process to avoid the time and cost uncertainties associated with the resource consent process.
The updated Tauranga City Plan aims to streamline the development process and provide clear guidelines for higher-density housing which is essential.[12] The plan proposes to focus on reducing barriers to development and ensuring that the planning framework supports the creation of diverse and affordable housing options.[13]
Intensification is not just a solution to a housing crisis; it is a strategic approach to building a resilient, inclusive, and thriving Tauranga Moana for generations to come. The benefits of a compact urban form far outweigh the potential rate increases, especially when considering the long-term financial sustainability and environmental health of our beautiful city.
List of sources
Tauranga City Statistical Information Report 2023
Tauranga Long-Term Plan 2024-2034
Urban Form and Transport Initiative: Final Report
Veros Property Services Residential Intensification Concept Designs and Testing (prepared for Tauranga City Council)
List of references
Tauranga City Council. (2023). Tauranga Long-Term Plan 2024-2034. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/long-term-plan/files/long-term-plan-2024-2034.pdf
Tauranga City Council. (2023). Tauranga Urban Strategy 2050. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/urban-strategy/files/tga_urban_vision.pdf
UFTI (Urban Form and Transport Initiative). (2020). UFTI Final Report. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/ufti/files/ufti-final-report-2024.pdf
Tauranga City Council. (2023). Section 1A Purpose of the Plan. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/city-plan/files/section1A.pdf
Tauranga City Council. (2023). Tauranga City Statistical Information Report 2023. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/reports/statistical-information-report-2023.pdf
Veros Property Services Limited. (2020). Residential Intensification Concept Design and Testing Report 2020: Prepared for the Tauranga City Council. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/future/growth/housing-choice/files/pc26-appendix6-pages1-73.pdf
Footnotes
[1] Tauranga City Council. (2023). Tauranga City Statistical Information Report 2023. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/reports/statistical-information-report-2023.pdf
[2] UFTI (Urban Form and Transport Initiative). (2020). UFTI Final Report. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/ufti/files/ufti-final-report-2024.pdf
[3] UFTI (Urban Form and Transport Initiative). (2020). UFTI Final Report. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/ufti/files/ufti-final-report-2024.pdf
[4] UFTI (Urban Form and Transport Initiative). (2020). UFTI Final Report. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/ufti/files/ufti-final-report-2024.pdf
[5] Veros Property Services Limited. (2020). Residential Intensification Concept Design and Testing Report 2020: Prepared for the Tauranga City Council. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/future/growth/housing-choice/files/pc26-appendix6-pages1-73.pdf
[6] Veros Property Services Limited. (2020). Residential Intensification Concept Design and Testing Report 2020: Prepared for the Tauranga City Council. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/future/growth/housing-choice/files/pc26-appendix6-pages1-73.pdf
[7] Tauranga City Council. (2023). Tauranga Long-Term Plan 2024-2034. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/long-term-plan/files/long-term-plan-2024-2034.pdf
[8] Tauranga City Council. (2023). Tauranga City Statistical Information Report 2023. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/reports/statistical-information-report-2023.pdf
[9] UFTI (Urban Form and Transport Initiative). (2020). UFTI Final Report. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/ufti/files/ufti-final-report-2024.pdf
[10] Tauranga City Council. (2023). Tauranga Urban Strategy 2050. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/urban-strategy/files/tga_urban_vision.pdf
[11] Tauranga City Council. (2023). Tauranga Urban Strategy 2050. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/urban-strategy/files/tga_urban_vision.pdf
[12] Tauranga City Council. (2023). Section 1A Purpose of the Tauranga City Plan. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/city-plan/files/section1A.pdf
[13] Tauranga City Council. (2023). Section 1A Purpose of the Tauranga City Plan. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/city-plan/files/section1A.pdf;Tauranga City Council. (2023). Tauranga Urban Strategy 2050. Retrieved from https://www.tauranga.govt.nz/Portals/0/data/council/plans/urban-strategy/files/tga_urban_vision.pdf
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